Correlation Between Repligen and Stevanato Group
Can any of the company-specific risk be diversified away by investing in both Repligen and Stevanato Group at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Repligen and Stevanato Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Repligen and Stevanato Group SpA, you can compare the effects of market volatilities on Repligen and Stevanato Group and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Repligen with a short position of Stevanato Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Repligen and Stevanato Group.
Diversification Opportunities for Repligen and Stevanato Group
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Repligen and Stevanato is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Repligen and Stevanato Group SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stevanato Group SpA and Repligen is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Repligen are associated (or correlated) with Stevanato Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stevanato Group SpA has no effect on the direction of Repligen i.e., Repligen and Stevanato Group go up and down completely randomly.
Pair Corralation between Repligen and Stevanato Group
Given the investment horizon of 90 days Repligen is expected to under-perform the Stevanato Group. In addition to that, Repligen is 1.09 times more volatile than Stevanato Group SpA. It trades about -0.02 of its total potential returns per unit of risk. Stevanato Group SpA is currently generating about 0.01 per unit of volatility. If you would invest 2,114 in Stevanato Group SpA on November 27, 2024 and sell it today you would lose (2.00) from holding Stevanato Group SpA or give up 0.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Repligen vs. Stevanato Group SpA
Performance |
| Timeline |
| Repligen |
| Stevanato Group SpA |
Repligen and Stevanato Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Repligen and Stevanato Group
The main advantage of trading using opposite Repligen and Stevanato Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Repligen position performs unexpectedly, Stevanato Group can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Stevanato Group will offset losses from the drop in Stevanato Group's long position.| Repligen vs. Intuitive Surgical | Repligen vs. ResMed Inc | Repligen vs. Merit Medical Systems | Repligen vs. ICU Medical |
| Stevanato Group vs. Haemonetics | Stevanato Group vs. Merit Medical Systems | Stevanato Group vs. AngioDynamics | Stevanato Group vs. AptarGroup |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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